Tanner comments, "With investors expecting the company to be active on the business development (BD) front, we examined the impact of potential acquisitions on the value of JAZZ shares. More important than the obvious benefit of an accretive transaction, we think that the market would be more inclined to ascribe a higher terminal value to the operation, in our opinion, given that the range of available options available may greatly diminish the firm's reliance on Xyrem.

He added, "recent share price appreciation may, in fact, reflect that dynamic, as we doubt investors have become incrementally more positive on the core business (which is performing well) or the possibility that the patent litigation will be resolved favorably for Jazz. We believe investors could be drawn to JAZZ shares and those of other Ireland-domiciled companies, given the potential that the companies could be useful vehicles for tax inversion."

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